The term 'Core Banking Solutions' is sometimes seen in the news. Which of the following statements best describes/describe this term? 1. It is a networking of a bank's branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. 2. It is an effort to increase RBI's control over commercial banks through computerization. 3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank. Select the correct answer using the code given below.
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A medium Economy multiple-choice question from UPSC Prelims 2016. Attempt it above, then check the correct answer and detailed explanation below.
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Correct answer: A. 1 only
Core Banking Solutions network a bank's branches so customers can operate their accounts from any branch (statement 1). It is not a means of RBI control (2) nor a takeover procedure for NPAs (3). So 1 only — option (a).
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